State policy

Rajasthan government has taken several steps aimed at streamlining the approval processes, promote export and knowledge intensive industries and provide better quality infrastructure. The main objective of these initiatives is to improve the investment and business climate in the state. A number of innovative policies has been announced by the state government have boosted the investment prospects in the state. Various investment promotion policies currently in force are as follows:

RAJASTHAN INDUSTRIAL AND INVESTMENT PROMOTION POLICY (RIIPP) 2010

The policy has been announced with a vision to catalyse investments, accelerate inclusive economic growth and create large scale employment opportunities in Rajasthan.

FOLLOWING ARE THE KEY FEATURES OF THE POLICY:

Improving the business climate through policy initiatives and systemic changes

Developing high quality infrastructure

Enhancing skill levels and employability by setting up training institutes in PPP

Easy availability of land for projects

Focus on MSMEs growth by giving high priority to cluster based development of MSMEs

UNDER THE POLICY, THE ELIGIBLE INVESTORS IN PRIVATE HEALTH SECTOR SETTING UP HEALTHCARE FACILITY IN RAJASTHAN, SHALL BE ENTITLED FOR FOLLOWING EXEMPTIONS AS PER RIPS 2010:

50% exemption from Electricity Duty for a period of 7 years

50% exemption in Stamp duty

50% exemption in conversion charges

SOLAR POLICY 2011

The policy aims to establish Rajasthan as a National leader in solar energy in phased manner by creating the policy frame work for promoting use of solar energy in various applications.

Various incentives provided under the policy by the State Government are as follows:

Exemption from Electricity Duty: The energy consumed by the power producers for own use will be exempted from payment of electricity duty.

Grant of Incentives available to industries: Generation of electricity from Solar Power Plants shall be treated as eligible industry under the schemes administered by the Industries Department and incentives available to industrial units under such schemes shall be available to the Solar power producers.

Availability of water for Power Generation: Water Resource Department will allocate required quantity of water from Indira Gandhi Nahar Project (IGNP) canal or the nearest available source for development of Solar Thermal Plants subject to the availability of water for power generation.

Power producer will intimate estimated water requirement to RREC along with source of water. After assessment/scrutiny, case of water requirement shall be forwarded to the Water Resource Department. The modification(s) required, if any, in the existing canal system shall be done by the Water Resource Department at the cost of the power producer.

The policy for the promotion of agro processing industries and agri-business seeks to address the entire value chain in agro processing and marketing, including development of the supply chain, market development and diversification.

THIS POLICY IS AIMED AT THE FOLLOWING OBJECTIVES:

To increase the income in the hands of the farmers through more remunerative prices of their produce

To encourage value addition in agricultural produce and to reduce post-harvest losses

To bring in new technologies and practices to modernize agro-processing and marketing

To promote export of agri-products of the State and to build a strong State brand in the domestic and international market

To attract private investment in agr- processing and to create new employment opportunities on a large scale.

AGRO PROCESSING AND AGRI-BUSINESS WOULD BE ENTITLED TO THE FOLLOWING CATEGORY OF INCENTIVES:

With a view to strengthening the institutional support framework, improving quality of MSME's products through Research & Development (R&D) and compatibility with the environmental benchmarks, the scheme is introduced in the State under Incentive Package for MSMEs 2008.

CONCESSIONS:

50% of the Capital cost for the establishment of Common Effluent Treatment Plant/Facilities (CETF/Facilities) by industries association of MSMEs in industrial areas/clusters in the State.

50% of the Capital cost incurred by MSMEs for establishment of individual Effluent Treatment Plant/Facility. This benefit would be available only if the enterprises establish the Effluent Treatment Plant/Facilities, using 80% of the recycled water.

Reimbursement of the expenses subject to a limit of 2 lac or 10 times of the fees, whichever is lower, incurred for filing and obtaining Patent/ISO Certification during the period between 14-2007 to 31-12-2011 by industrial enterprises or R&D unit or testing laboratories.

Part of the capital cost as decided by the competent committee under clause 6(I) for setting up a regional office or the branch of national laboratories in the State.

Part of the capital cost as decided by the appropriate committee mentioned under clause 6 for the establishment of Research, Development and Testing laboratories set up by MSMEs Association. Maximum limit of part of the capital cost to be provided under the Scheme by the State Govt. would be 2 crore. This benefit would be available only to such laboratories which obtain accreditation from national level accreditation board/authority.50% of the capital cost for setting up of training institute in the State by National/State Level Institutions forensuring availability of skilled manpower in the State.

Exemptions: 75% exemption from Electricity Duty to the MSMEs located in rural areas.

IT & ITES POLICY 2007

An investor friendly IT Policy is already in place which provides lucrative incentives to IT industries. The following concessions are being available in IT Parks:

Land rebate up to 60%, depending upon type & size of investment

Exemption of Stamp Duty on registration of land

50% Exemption from electricity duty for 7 years

Simplified Labour Laws (Women are allowed to work in night shift, self-certification under various State enactments, etc.)

Customized package for Investment beyond 10 crore.

Venture Capital support

TOURISM UNITS POLICY 2007

The Tourism Units Policy 2007 covers Hotels, as well as all other units such as Heritage Hotels, Camping Sites, Holiday Resorts, Health Spas, etc.

The minimum and maximum area for land to be auctioned from the land bank has been prescribed. The minimum area in the 2007 policy is the maximum area in the policy of 2006.

The cost of land has been differentiated with the budget and 3-star hotels base price fixed at less than 50% of the commercial reserve price.

Under Rule 7 of the Rajasthan Land Revenue Rules 2007 (conversion of agricultural land for non-agricultural purpose in rural areas), a proviso has been added exempting from conversion charges all those desirous of establishing hotels or any other tourism unit on the land held by them.

Regarding conversion of residential land and heritage properties into hotels and other tourism units, a proviso has been added to the Rajasthan Municipal Corporation Rules 2000 (land utilization conversion), where heritage property owners would not have to pay 40% of residential reserve price for conversion of the property into a heritage hotel, with the rider that the property should have a minimum of 10 rooms.

FAR of existing hotels would be increased from 1.75 to 2, to allow construction of an additional floor.

However, the land coverage area shall be similar to previous permissible area. The additional floor would only be used for rooms.

OTHER POLICIES AND SCHEME

VARIOUS OTHER POLICIES FOR PROMOTING INVESTMENTS IN THE STATE ARE:

Policy for Promotion of Private Sector Investment for setting up of Power Generation projects in the State of Rajasthan 2005.

Policy for Promoting Generation of Electricity through Non-Conventional Sources 2004

Rajasthan Social Sector Viability Gap Funding Scheme

Scheme for establishing Technical Institutes in lagging areas

Udyog Sansthan Sahabhagita Yojana for private parties to run second shifts in existing government ITIs Scheme for establishing engineering college under PPP mode in districts where facility of engineering college is not available